Altcoin breadth on Binance has deteriorated sharply, with a big majority of tokens now buying and selling beneath a broadly watched long-term development degree, an exhaustion sign that CryptoQuant contributor Darkfost frames as a liquidity drawback as a lot as a worth drawback.
In a submit on X, Darkfost (@Darkfost_Coc) shared a CryptoQuant chart monitoring the share of Binance-listed altcoins buying and selling beneath their 50-week shifting common alongside Bitcoin’s worth. His headline declare: “LIQUIDITY CRUNCH PUSHES 83% OF ALTCOINS INTO BEAR TREND,” arguing that almost all traders uncovered to non-Bitcoin, non-stablecoin property are “now in important problem,” notably these nonetheless holding positions.
Altcoin Breadth Breaks Down On Binance
Darkfost’s chart, titled “Altcoins efficiency (Binance)”, exhibits the proportion of altcoins beneath the 50-week shifting common rising again into traditionally confused territory. In his newest learn, 83% of Binance altcoins are beneath that threshold, an indication that weak point shouldn’t be remoted to a handful of names however unfold throughout the tape.
He additionally pointed to an much more excessive episode earlier this month. “Because the finish of the bear market in 2023, a brand new document was set on February 7, with greater than 92% of altcoins on Binance buying and selling beneath this key technical help,” he wrote, describing it as a post-2023-cycle excessive in draw back participation.
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That stands in stark distinction to the circumstances seen throughout earlier upside phases. Darkfost famous that in March 2024 solely 6% of Binance altcoins traded beneath the 50-week line, and in December 2024 the determine was 7%. Exterior of these multi-month home windows, he added, no less than half of altcoins remained beneath the edge, conduct he characterised as meaningfully completely different from the prior cycle’s breadth dynamics.
Darkfost framed the altcoin drawdown as inseparable from Bitcoin’s development and the macro backdrop, suggesting that the market’s danger price range has tightened whereas altcoin provide has expanded.
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“The market continues to be pushed by BTC’s actions, which has been in a downtrend since October 2025 following an ATH at $126,000. At current, BTC’s momentum stays extremely unsure, with worth nonetheless hovering at roughly 46% of its all time excessive. Rising geopolitical tensions, notably between the US and Iran, alongside more and more hawkish projections and tone from the Fed expressed within the newest FOMC minutes, are making the present atmosphere particularly difficult for extremely risky property comparable to altcoins,” he wrote.
The chart itself marks BTC close to the mid-$60,000 vary, underscoring his broader level: in a regime the place Bitcoin route is unclear and macro inputs are hostile to period and volatility, breadth in higher-beta tokens can deteriorate shortly after which keep impaired.
Why The 50-Week Line Issues
Darkfost emphasised the 50-week shifting common as a long-horizon filter utilized by market individuals to separate corrective phases from structurally constructive ones. When a majority of tokens sit beneath it, rallies are usually narrower, choice strain rises, and “alt season” narratives turn out to be more durable to maintain and not using a decisive shift in liquidity circumstances.
He attributed the present setup to “the rise in altcoin provide throughout the broader crypto market mixed with nonetheless constrained liquidity circumstances,” a mix that may mechanically dilute marginal flows. In that atmosphere, he argued, outperforming turns into much less about broad beta publicity and extra about understanding how market construction has modified.
At press time, the full crypto market cap excluding Bitcoin stood at $943.46 billion.
Featured picture created with DALL.E, chart from TradingView.com
